Place, in the context of the global marketing mix, refers to the strategic decisions involved in distributing products from the point of production to consumers across international markets. This aspect of the marketing mix plays a critical role in ensuring that products are accessible and available in the right locations and through appropriate channels, supporting the overall global value delivery network. Companies must structure their distribution strategies to accommodate diverse consumer habits, logistical complexities, and local infrastructure capabilities. A well-optimized placement strategy can significantly impact a company's ability to reach and serve international customers effectively.
Global Value Delivery Network: The global value delivery network consists of two primary links: the channel between nations and the channel within nations. The first link involves transporting goods from the production site to the target country, which requires effective management of international shipping, customs, and warehousing. For instance, Toyota's extensive global distribution network ensures its vehicles are available in multiple countries by utilizing an efficient supply chain that minimizes transportation costs and delivery times. Once the product reaches its destination, the second link comes into play—distributing the product within the nation to various retail outlets, e-commerce platforms, or local distributors to ensure consumer access.
Digital Distribution and E-Commerce: Digital transformation has reshaped the global place strategy, eliminating many traditional barriers. E-commerce platforms such as Amazon and Alibaba have created opportunities for companies to reach international consumers directly without needing physical retail space in foreign markets. This shift enables businesses to sell products across borders seamlessly, with services like digital payment systems and localized websites ensuring an accessible shopping experience for consumers in different countries. For example, Nike leverages its online store to market products globally, allowing consumers in different regions to access the same catalog of athletic wear and footwear, irrespective of location.
Channel Strategies and Market Positioning: Placement decisions also reflect a brand's positioning in the market. High-end brands, such as Gucci or Louis Vuitton, choose selective distribution strategies, ensuring their products are only available in exclusive stores or high-end boutiques. This selective placement supports their luxury positioning by preserving brand exclusivity and prestige. In contrast, consumer goods companies like Coca-Cola employ intensive distribution strategies, ensuring their products are available in a wide variety of locations, from grocery stores to vending machines, to maximize reach and market penetration.
Influence of Cultural and Economic Factors: Local factors such as cultural preferences, infrastructure, and economic conditions heavily influence placement decisions. For instance, in Japan, vending machines are a popular distribution method for beverages, while in countries with less developed infrastructure, such channels may not be viable. Companies must tailor their distribution strategies to suit the specific market environment. In India, where rural consumers may lack access to large supermarkets, companies like Hindustan Unilever use a network of local distributors and small-scale retailers to reach customers in remote areas.
By aligning place decisions with the nuances of each target market, companies can optimize their global distribution network, enhance product availability, and maintain consistent brand positioning across diverse markets.
From Chapter 16:
Now Playing
Global Marketing
3 Views
Global Marketing
5 Views
Global Marketing
8 Views
Global Marketing
6 Views
Global Marketing
7 Views
Global Marketing
4 Views
Global Marketing
15 Views
Global Marketing
7 Views
Global Marketing
7 Views
Global Marketing
8 Views
Global Marketing
4 Views
Global Marketing
4 Views
Global Marketing
17 Views
Global Marketing
5 Views
Global Marketing
6 Views
Copyright © 2025 MyJoVE Corporation. All rights reserved